What is an export list

What is an export list?

In the insurance world, an export list is a list of coverages that a state has determined to be very difficult or impossible to obtain in the admitted market. Therefore, the risk can be placed directly in the surplus lines, or non-admitted market, bypassing the diligent effort requirement. The purpose of a state export list is to make it easier to obtain certain insurance coverages that would otherwise be more difficult to procure.

Does every state have an export list?

No, not every state has an export list. Some examples of states that do NOT have a list are Ohio, Massachusetts, and Illinois. However, many states do have an export list, including Montana, Arizona, and New Jersey. Some state export lists include long, extensive lists of coverages, like the California export list. However, others have just a few, like Michigan. Since export lists are based on the admitted insurance market available in a particular state, these lists (in the states that have them) will naturally vary.

What are some common coverage types that appear on state export lists?

Every state’s export list is different; however, some coverage types show up on most states’ export lists. Some examples of coverages commonly found on export lists are: 

  • Amusement Rides or Devices
    • Examples of states where this appears on the list include: New York, California, Pennsylvania, New Jersey, Michigan, and Arizona
  • Environmental Impairment or Pollution
    • Examples of states where this appears on the list include: Michigan, California, New York, Pennsylvania, Montana, and Maryland
  • Vacant Buildings
    • Examples of states where this appears on the list include: New York, Maryland, Nevada, Idaho, Montana, and New Jersey
  • Employment Practices
    • Examples of states where this appears on their list include: Connecticut, Nevada, Idaho, Maryland, New Jersey, and California 

It is important to note that even though the above coverages appear on many states’ export lists, they may not appear on all states’ export lists. Other coverages may show up on some states’ lists, but are less common across multiple states. For example:

  • Cyber
    • Examples of states where this does appear on their list include: Arizona, Nevada, and Montana
    • Examples of states where this doe NOT appear on their list include California, Maryland, and Connecticut.
  • Liquor Liability
    • Examples of states where this does appear on their list include: Pennsylvania, New Jersey, Idaho, and Nevada
    • Examples of states where this does NOT appear include: Connecticut and Michigan

What does it mean if your policy’s coverage type appears on the state’s export list?

If the policy’s coverage type appears on the state’s export list, the surplus lines broker can bypass that state’s diligent search requirement and place the risk directly in the non-admitted market. In other words, the required declinations from the admitted market would not be required before placing the risk with a surplus lines carrier. This can significantly impact the amount of work necessary to place a risk in the non-admitted market.

It is important to note that a coverage’s exportability in a state does not impact any surplus lines reporting or tax payment requirements in that state. However, if a coverage is on the export list, it may ease some of the filing requirements. For example, if a coverage is on the export list in Pennsylvania, the 1609 affidavit would not be required as part of the surplus lines filing. Likewise, in California, the SL-2 would also not be required. Other states do not waive form requirements, but exportable risks can streamline form completion. For example, the Part C Affidavit in New York is typically easier to complete since the declination portion of the form can be bypassed.

How can I easily keep track of the varying coverages by state?

If the thought of tracking the various requirements and export list coverages for each state seems overwhelming, you’re not alone! There is so much information to keep track of, and if there is a way to simplify the process of writing compliant coverage, we’re all for it! The InsCipher Connect™ platform does just that. Our intuitive software tracks the export list in every state and our portal is designed to make it easy to use the lists in the states that have them.

InsCipher is an insurtech company providing software and services that are revolutionizing inefficient insurance processes. Save your agency time and money by automating surplus lines compliance, filing, and reporting. Want to learn more? Request a free demo today!

Becky - Filing Services™ Manager at InsCipher

Becky is an insurance professional from Ohio with 14 years of compliance experience. She has been with the InsCipher team since November 2018 as the Filing Services Manager, overseeing our in-house surplus lines Filing Services™ and license management teams.

https://www.inscipher.com

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